Mike Ashley’s Frasers Group has reportedly reduced the salary of its executive team to £40,000 and has pledged to pay all his staff up until the end of April.
According to The Times, the executive team has taken a voluntary pay cut in a “show of support towards securing the future of the Frasers Group”.
The guarantee in pay for the month of April also includes warehouse staff and those on zero-hours contracts. However the group added it cannot commit to beyond the end of the month.
The news comes after the group issued a profit warning after revealing its board expects Covid-19 to cause a “significant disruption” to its business.
The retailer said the impact, including customer footfall, will likely mean the group “will not achieve” its previous guidance of 5-15% EBITDA growth for the year ending 26 April 2020.
It also revealed it will no longer give official guidance on its 2020 financial year.
Frasers added that prior to the coronavirus outbreak its performance had been “in-line with expectations”.
